T. Boone Pickens not suprised by lower crude prices (Reuters)
Crude oil prices are plunging, but T. Boone Pickens isn’t surprised. The billionaire oilman has seen plenty of spikes and dips during more than 60 years in the industry, including some he predicted. Texas is producing more oil than it has in 30 years, and pumping twice as much as it did just three years ago. It now accounts for more than one-third of all U.S. production. The surge, however, comes as a stagnant global economy slows demand.
Bonus Season Brings More Pain for Traders (WSJ)
Many of Wall Street’s deal makers are heading toward a happy year-end bonus season, while traders and hedge-fund employees are bracing for a disappointing payout. Investment bankers, including those who advise companies on mergers and underwrite stock offerings, and private-equity employees should see bonuses rise as much as 15% from a year ago, according to an analysis by Johnson Associates, a New York compensation-consulting firm.
Vodafone facing €8B Kabel Deutschland charge (MobileWorldLive)
Activist hedge fund Elliott Management said that Vodafone Group Plc (ADR) (NASDAQ:VOD) may have to dish out an additional €8 billion for Kabel Deutschland, which the operator acquired for €7.7 billion last year, depending on the outcome of a court case. Elliot has filed a complaint in German courts against Vodafone, saying the company undervalued its stake in Kabel Deutschland Holding AG. In a quarterly letter to investors, cited by Financial Times, Elliott, which owns 13 per cent of Kabel Deutschland shares, claimed Vodafone should have paid €250 per share instead of €84.53.
Hedge Founder’s Break Up May Alter U.K. Divorce Law (BusinessWeek)
Chris Hohn, one of the most successful U.K. hedge-fund managers, may recast the country’s divorce law if he wins more than half the family assets in his split from his wife. A judge may rule as soon as this week in Hohn and Jamie Cooper-Hohn’s dispute over their $1.3 billion estate and roles in the $4.3 billion charitable foundation they created with their fortune. The case, which may lead to the country’s largest divorce settlement, could change the law for the super rich if the judge accepts Hohn’s argument that his financial talents constituted a special contribution to the marriage.
Hedge Fund Hiring Speeds Up In 2014 (HedgeCo)
With the industry reaching a new high of $2.82 trillion in assets and net inflows at their highest level since 2007, the industry finds itself in tight competition for talent against other industries, as well as other hedge funds, for top finance professionals. Compensation increased 5-10 percent over 2013 compensation, according to the 2015 Glocap Hedge Fund Compensation Report, with front office roles including Portfolio Managers, Traders and Senior Analysts seeing increases, as well as professionals in Marketing and IT at top performing funds.
How Karsch found Juice Press (CNBC)